Baker & McKenzie Advises Bayerische Landesbank on USD200 Million Syndicated Loan Facility to Privatbank

Kyiv/Munich, 5 April 2008 – LAWFUEL – Legal Announcements – Baker & McKenzie announced today that it has recently acted as Ukrainian and English law counsel to Bayerische Landesbank with respect to USD200 million syndicated loan facility to Joint Stock Company Commercial Bank “PrivatBank”, the largest Ukrainian commercial bank in terms of total assets, customer accounts and capital.

The loan facility was arranged by Bayerische Landesbank, who also acted as Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and UniCredit Markets & Investment Banking (represented by Bank Austria Creditanstalt AG and Bayerische Hypo-und-Vereinsbank AG) as Mandated Lead Arrangers. Furthermore, over 10 other US, European and Middle East banks participated in the syndication. The attracted funding will be used to help finance the PrivatBank’s existing trade-related projects. This transaction sets a benchmark for the Ukrainian banking sector, as at date, this is the ever low-priced syndicated loan, arranged by the leading European banks and banking groups.

Bayerische Landesbank is Germany’s seventh largest bank and a leading provider of financial products and services, ranging from investment banking solutions to real estate financing and insurance. It is a principal bank to the state of Bavaria and serves as the clearing house for the 77 Bavarian Sparkassen (savings banks).

The joint Baker & McKenzie team was led by Partners Michael Foundethakis in Munich and Oksana Simonova in Kyiv with the key input from Associates Kathrin Schmid-Pfaehler in Munich and Irina Nurzad in Kyiv.

Commenting on the transaction, Oksana Simonova, Partner at the Kyiv office of Baker & McKenzie, said: “We find this prominent transaction completed in very short terms as a good example of foreign banks’ interest in lending to reputable Ukrainian banks despite unfavorable market conditions”.

Michael Foundethakis, Partner at the Munich office, added: “This transaction is indicative of the continued interest displayed by international, particularly German, banks and financial institutions in the Ukrainian market. One would expect that transactions such as this one will over time serve as precedents for the establishment of market standard finance documents specific to Ukraine”.

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